Nestlé is taking another step towards its commitment to sustainability and supporting a transition to regenerative agriculture in Latin America by investing in Yield Lab Latam’s sustainability fund. The funds will be allocated for organisations involved in creating packaging solutions and to promote regenerative farming. The move comes as Nestlé acknowledges that almost two-thirds of its greenhouse gas emissions come from agriculture, and hence, they have pledged to offset some emissions through regenerative agriculture practices.
According to a Nestlé spokesperson, the investment is part of the company’s open innovation approach, where it collaborates with external partners to strengthen local innovation infrastructure and “identify solutions that complement our ongoing work in sustainability in the agricultural sector.”
The Yield Lab Latam, with offices in Argentina, Brazil, Chile, and Mexico, has already invested in various companies that are committed to addressing the challenges of the food industry. Some noteworthy examples include Eiwa from Argentina, providing a management platform for seed, crop protection and crop nutrition corporations; Sioma from Colombia, which uses technology to improve the productivity of tropical farmers, and Agroforte from Brazil, a digital bank supporting small and medium-sized meat and poultry producers.
Furthermore, Nestlé and Yield Lab Latam are partnering to implement regenerative agriculture practices across the dairy industry, with an ongoing launch of 80 projects in 11 countries across Latin America.
While the term regenerative agriculture does not have an official definition, it commonly refers to farming practices that focus on improving the environment, such as reducing the use of pesticides, avoiding soil disturbance, or increasing crop diversity. Nestlé’s spokesperson highlighted that the investment in the Yield Lab supports the company’s goal to “make the sector more sustainable and efficient.”
Santiago Murtagh, Managing Director of Yield Lab Latam, says that they are “leveraging our proximity to local entrepreneurial talent and the reach of our network of innovation centers” to act as a bridge between investors in the food industry and innovative solutions for sustainable food production. The relationship between Nestlé and Yield Lab Latam reflects their common vision to address the industry’s challenges and promote sustainable food production for the next generation.
